J.D. Edwards Incurs Further Losses In Third Quarter
P.J. Jakovljevic - September 3, 1999

Event Summary

J.D. Edwards shifted deeper into the 'lagging ERP vendor' category last week, as falling licensing revenue led to a drop in overall revenue and net losses in the company's third quarter, ended July 31. For the period, J.D. Edwards reported revenue of $232 million, $8 million down from last year's third-quarter revenue of $240 million. While licensing revenue fell quarter over quarter from $98 million last year to $75 million this year, the company was saved from total disaster by an 11% increase in services revenue to $157 million, compared with $141 million in third-quarter 1998. Without that, J.D. Edwards' picture would have been very bleak indeed. The net loss after acquisition write-offs was $33.2 million compared with a profit last year of $18.1 million. J.D. Edwards has lost a significant amount of its cash strength too. Since last November, its cash position has dwindled $142.2 million to $391.8 million. In the last quarter alone, cash resources fell by a whopping $125 million, of which $80 million is accounted for by the acquisition of supply chain vendor Numetrix...